There Is a Strong Consensus Among Economists That Monetary Policy

question 23

Multiple Choice

There is a strong consensus among economists that monetary policy is more effective when it is formed:

• A) by an individual rather than a committee.
• B) in secrecy without the reasoning behind it being revealed for many years.
• C) to keep financial markets guessing.
• D) independently of political pressure.

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Definitions:

ROE

Return on Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company is using its equity to generate profits.

Dividend Growth Rate

The annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time.

Earnings

The net profits of a company after all expenses have been deducted from revenues.

Earnings Reinvested

Profits that are not paid out as dividends but are instead reinvested in the business to fund growth or pay down debt.